TDS can deduct 50%

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the rules for Tax Deducted at Source (TDS) when only a partial payment is made to a vendor. If you book the full invoice amount and create a 100% liability, you must deduct 100% TDS on the entire amount, even if you only pay 50% to the vendor. TDS is generally deductible on the earlier of the invoice booking date or the payment date.

amruth

amruth (Querist)
Follow

11 May 2020 Hi All,

If we received Service Invoice for Rs.10000+18%GST=11800/-
but we paid only 50% of amount to Vendor Rs.5900/- then we can deduct TDS 50% can pay to Department or we have to deduct 100% TDS and pay.

Thanking You
Amruth Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

11 May 2020 Yes, you can deduct 50% TDS which is only payable.
If you create 100% liability and pay only 50%, TDS has to be deducted 100%.

Gokul Sharma

Gokul Sharma (Expert)
Follow

11 May 2020 TDS has to be deducted 100%.

As booking of bill or payment which ever is earlier.

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
Follow

11 May 2020 In the above case you are booking 100% of the expenditure and creating your liability.
TDS is to be deducted @100% on the entire liability

amruth

amruth (Querist)
Follow

11 May 2020 Thank you very much Sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!